Index to Nigerian Newspapers

FG eyes $2bn from local dollar bond sale

The $2bn domestic FGN US dollar bond opening in Nigeria is expected to have a positive impact on the economy. The first series of $500m was announced at a hybrid roadshow in Lagos, attended by the Minister of Finance and Coordinating Minister of Economy, Wale Edun, and Director General of the Debt Management Office, Ms. Patience Oniha. The bond offering is targeted at pension funds, banks, Nigerians living in the country, foreigners living in the country, and Nigerians living in the diaspora. United Capital is the lead issuing house for the offering. Analysts predict that the offering will boost external reserves to help stabilize the Nigerian currency. The bond issuance holds promise to investors and the economy in several ways, such as providing an alternative, cheaper source to meet the government's financing needs and strengthening the naira. However, the tenor of five years seems ambitious, and a two-year, short-term tenor would have been better and less costly.

Abimbola Oluwakemi | Economic/Finance | Punch Newspaper | Monday, August 19, 2024